Foreign direct investments to the Philippines posted a sharp increase in June, as easing coronavirus lockdowns soothe investor's nerves.

FDIs posted a net inflow of $833 million in June, up 60.4% year-on-year, the Bangko Sentral ng Pilipinas reported.

That brought the six-month net inflows to $4.3 billion, 40.7% on an annual basis.

A net inflow means more FDIs entered the country against those that left.

As it is, FDIs are important to the economy since they bring in dollars and generate jobs for Filipinos, unlike the so-called “hot money” that moves in and out of markets with ease.

For this year, the BSP forecast FDIs to reach $7.5 billion.

Breaking down the June data, equity capital placements, a measure of new FDIs that entered the country, amounted to $119 million during the month, down 38.2% year-on-year.

Meanwhile, a total of $26 million capital left the country in June, down 112% on an annual basis.